The Ramelius Resources Limited (ASX: RMS) share price is trading 8% lower today at $1 apiece.
Investors are selling the $945 million company by market cap following a company announcement on its gold production estimate for FY22.
What did Ramelius announce?
The company advised that gold production is expected to fall "marginally short" of the current guidance range.
It noted that:
[M]ore persistent rain than forecast, especially recently, on some of the haulage routes to both the Mt Magnet and Edna May operations, ongoing staff shortages due to COVID/influenza and a lower than forecast head grade from Tampia, it is expected that gold production for FY22 will fall marginally short of the current guidance range of 260,000 – 265,000 oz.
This is despite the best efforts of the Ramelius and contractor teams in a challenging operating environment across the Western Australian resources industry.
Ramelius downgraded FY22 production guidance to 255,000–260,000 ounces as a result.
The company also noted it's "too early" to provide definitive guidance on all-in-sustaining costs (AISC).
Still, an AISC of $1,475–$1,525/ounce is a reasonable expectation, it noted.
Actual results for FY22, in addition to FY23 guidance, will be provided in its quarterly report, set for release in July.
Turning to the trading session, investors weren't pleased with the news and have sold en masse today. Already they've pushed trading volume towards the 4-week average of 3.9 million shares.
The loss also extends a difficult period for Ramelius on the chart. It is down 25% in the last month alone.
Meanwhile, in the last 12 months, the Ramelius share price has cratered more than 41% and 36% this year to date.
